Suhyup Bank has officially begun the process of selecting its next CEO. With three internal candidates and three external candidates in the running, securing four votes from the CEO recommendation committee has become crucial. As the bank aims to transition to a financial holding company by 2030, identifying a suitable leader to drive future mergers and acquisitions (M&A) and the holding company transition is a key focus.
According to financial industry sources, the CEO recommendation committee conducted document reviews on six applicants on September 9, selecting candidates for interviews. The internal candidates include current CEO Shin Hyung-jo and former vice presidents Park Yang-soo and Jeong Cheol-kyun. The external candidates are Lee Hyung-joo, director of the Financial Intelligence Unit (FIU), Kang Cheol-seung, head of the Korea Fisheries Policy Forum, and Lee Hyung-seung, an outside director at BNK Securities.
Those who pass the document review will be interviewed on September 21. The committee plans to recommend a final candidate on September 22, followed by approval from the Suhyup Bank board, the Suhyup Central Association board, and the shareholders' meeting next month. The new CEO's term will last until November 17.
A key factor in this selection process is obtaining agreement from at least four of the five committee members. The committee consists of three members recommended by the government and two by the Suhyup Central Association. A consensus between the two sides is necessary, as a decision cannot be made by just one group.
In past selections, differing preferences for candidates between the two sides have prolonged the process. In early 2017, after three rounds of applications, former CEO Lee Dong-bin was appointed, and in 2020, no candidate received four votes, leading to a reapplication. In 2022, both sides supported different candidates, resulting in additional applications and interviews before former vice president Kang was appointed.
The competition between Shin and Lee is drawing attention in the financial sector. Shin is noted for his strong understanding of the bank's internal affairs and ongoing projects. Under his leadership, Suhyup Bank's total assets increased from 63.3 trillion won at the end of last year to 70 trillion won in the first half of this year, with a pre-tax net profit of 2.034 trillion won recorded in the same period.
Lee can leverage his experience in policy and regulation from his time in financial authorities. As Suhyup seeks to secure non-banking subsidiaries in securities and capital and transition to a holding company structure, the ability to coordinate with financial authorities may favor an external candidate.
This selection process is closely tied to Suhyup's expansion into non-banking sectors. The bank aims to transition to a financial holding company by 2030, having acquired Trinity Asset Management last year and currently pursuing acquisitions of Sam Sang In Securities and a capital company. The goal is to diversify its revenue structure, which is heavily reliant on banking, into securities, asset management, and capital, laying the groundwork for a comprehensive financial group.
If Shin is reappointed, it would ensure continuity in the ongoing M&A and holding company transition efforts. Conversely, if an external candidate is appointed, there may be changes to the roadmap for expanding non-banking operations and the holding company transition.
There is also interest in whether Shin will succeed in his reappointment. Since Suhyup Bank was separated from the Suhyup Central Association's credit business in 2016, no sitting CEO has been reappointed. If Shin is selected as the final candidate, he would become the first CEO to be reappointed at Suhyup Bank.
A banking industry official stated, “Given that Suhyup Bank is smaller than commercial banks, it aims to expand its revenue base and scale through acquisitions of non-banking subsidiaries. Completing the ongoing M&A and establishing a foundation for a sustainable financial group will be the next CEO's key task.”
* This article has been translated by AI.
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